EU tax regulations have Envato act as the supplier for EU VAT purposes only, and collect this tax on purchases made by non-registered European Union buyers. For more information, refer to EU VAT for authors.
You can read more about the changes at the EU Commission website, and in the explanatory notes to Article 9A.
Where does EU VAT apply?
EU VAT is collected from buyers in the EU who do not have a valid VAT registration number, and will be applied on:
How does it work?
When a buyer is from an EU country and has not provided a valid EU VAT Number:
- The amount of EU VAT is calculated as a percentage of the purchase price and/or fee it applies to.
- The percentage is based on the EU VAT rate in your country (Refer to page 3 of the .pdf file)
- EU VAT is paid by you ‘the buyer’. All prices and fees for transactions made through Envato Market shown on the site are EU VAT exclusive.
- EU VAT will be charged in addition to the item price or fee amount, and presented to you ‘the buyer’ at the time of checkout.
- Envato, and not the author of the item, is responsible for determining, collecting and remitting VAT for all Envato Market purchases for EU customers (Regardless of where the seller is located). Your invoice will show Envato as the supplier on record for VAT purposes.
- Value Added Tax (VAT) charged to buyers will be remitted by Envato to the EU via our VAT MOSS in the UK. As at 1st October 2019, Envato’s VAT number has changed. Our new VAT number is EU372009975. Prior to 1st October 2019 Envato’s VAT number was EU826409867.
When a buyer is from an EU country and has provided a valid EU VAT Number, no additional tax will be collected. You will receive an invoice that shows that the Reverse Charge Mechanism must be used to account for the EU VAT on that transaction.